Garment Services to invest US $ 1.1 m on new venture

Hemanthi Guruge

Garment Services Lanka Ltd in Delkanda has agreed to invest over US $ 1.1 million in a new garment factory that will produce garments for European countries. Company Director Christopher Katukurunda told Daily News Business that the new factory, Garment Services Meegoda will provide around 500 employment opportunities for youth in the area.

The factory which is undergoing renovation is expected to be opened next year. Garment Services Meegoda is the subsidiary company of Garment Services Lanka.

Garment Services Lanka has been engaged in manufacturing garments for export. At present, there are over 500 people working in the factory.

"The garments business is performing very well and therefore we have decided to invest in another factory," he said.

The garment industry in Sri Lanka expanded rapidly after the liberalization of the economy in 1977. During the 1990s the garment industry has grown at 18.5 percent per annum. The export led expansion of the industry led to the replacement of tea by garment as the nation's largest foreign exchange owner. Meanwhile, the industry has been contributing to the livelihood of millions of people throughout the country.